Sales Tax Payable: a tax levied on retail sales. The business must charge this
and collect the money and then pay it to the state or city
Each state/city sets its own %. This is not a revenue or an
expense to the business. They collect the cash and have an
obligation to pass it on to the city/state.

Journal entry for sales tax collection and payable:

Cash $XXXX
Sales revenue $XXXX
Sales Tax Payable $ XX

Part of what is collected is revenue and part is owed to city/state.

Unearned Revenues: occurs when the company collects money from a customer
before providing the goods or services – they owe the customer
the goods or services. This is normally short term.

Short Term Notes Payable: A written promise to pay an amount borrowed, with interest
Short term means the principle will be repaid in < 1 year
Notes payable typically have monthly periodic payments

Payroll Liabilities: Amounts assessed to the business by the government and
amounts taken out of the employee’s check that must be paid to
the government for them:

Gross Pay – the total amount the employee earns (hrs worked x $ per hr)
Net Pay – the amount the employee receives after deductions are taken